CFE-Law ACFE Certified Fraud Examiner (CFE) - Law Free Practice Exam Questions (2025 Updated)

This question tests your knowledge of Domain 1.

In the context of Overview of the Legal System, specifically relating to adversarial, the question asks about the core concepts in this area.

The correct answer is D: Is influenced by bias or self-interest.

This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions. In adversarial systems, opposing parties present their cases before a neutral judge or jury, while in inquisitorial systems, judges take a more active role in investigating cases.

This question tests your knowledge of Domain 3.

In the context of Bankruptcy Fraud, specifically relating to bankruptcy, trustee, bustout, the question asks about the core concepts in this area.

The correct answer is D: Purchases large quantities of goods on credit.

This question focuses on bankruptcy fraud concepts. The correct answer correctly identifies the relevant bankruptcy process, filing type, or fraud scheme. Understanding bankruptcy proceedings and the roles of various parties is essential for fraud examiners investigating these cases.

This question tests your knowledge of Domain 7.

In the context of Individual Rights During Examinations, specifically relating to employee, the question asks about the core concepts in this area.

The correct answer is A: Fidelity.

This question relates to individual rights during examinations. The correct answer accurately describes the legal protections, obligations, or privacy considerations that apply in workplace investigations. Fraud examiners must balance investigative needs with legal protections for individuals.

This question tests your knowledge of Uncategorized.

the question asks about the core concepts in this area.

The correct answer is C: Structuring.

This question tests your understanding of key fraud examination concepts and legal principles.

This question tests your knowledge of Domain 2.

In the context of The Law Related to Fraud, specifically relating to bribery, the question asks about NOT.

The correct answer is A: True.

This question addresses fraud-related laws. The correct answer identifies the proper legal concept or violation that applies in the described scenario. Fraud examiners must understand these legal principles to properly identify and address fraudulent activities.

This question tests your knowledge of Domain 5.

In the context of Money Laundering, specifically relating to money laundering, the question asks about money services businesses (MSBs) is INCORRECT, INCORRECT.

The correct answer is B: MSBs are generally less strictly regulated than traditional financial institutions..

This question addresses money laundering concepts. The correct answer correctly identifies the stage, method, or regulatory framework related to money laundering or anti-money laundering efforts. Understanding these processes is critical for fraud examiners working to detect and prevent financial crimes.

This question tests your knowledge of Domain 2.

In the context of The Law Related to Fraud, specifically relating to conspiracy, the question asks about the core concepts in this area.

The correct answer is C: The defendant knew all the details or objectives of the conspiracy.

This question addresses fraud-related laws. The correct answer identifies the proper legal concept or violation that applies in the described scenario. Fraud examiners must understand these legal principles to properly identify and address fraudulent activities.

This question tests your knowledge of Domain 3.

In the context of Bankruptcy Fraud, specifically relating to bankruptcy, the question asks about the core concepts in this area.

The correct answer is A: Reorganization bankruptcy.

This question focuses on bankruptcy fraud concepts. The correct answer correctly identifies the relevant bankruptcy process, filing type, or fraud scheme. Understanding bankruptcy proceedings and the roles of various parties is essential for fraud examiners investigating these cases.

This question tests your knowledge of Domain 5.

In the context of Money Laundering, specifically relating to FATF, the question asks about large cash transactions with customers which of the following transactions would require a report to be Wed with the government, FATF.

The correct answer is D: A lump-sum cash deposit to a bank above the jurisdiction's designated threshold.

This question addresses money laundering concepts. The correct answer correctly identifies the stage, method, or regulatory framework related to money laundering or anti-money laundering efforts. Understanding these processes is critical for fraud examiners working to detect and prevent financial crimes.

This question tests your knowledge of Domain 2.

In the context of The Law Related to Fraud, specifically relating to misrepresentation, the question asks about the core concepts in this area.

The correct answer is A: "Would a reasonable investor want to know the information to make an informed decision?".

This question addresses fraud-related laws. The correct answer identifies the proper legal concept or violation that applies in the described scenario. Fraud examiners must understand these legal principles to properly identify and address fraudulent activities.

This question tests your knowledge of Domain 1.

In the context of Overview of the Legal System, specifically relating to criminal, the question asks about MOST ACCURATE, how criminal bargaining agreements are typically handled in jurisdictions where such agreements are allowed.

The correct answer is A: The defense generally has the discretion to decide whether to settle charges with a bargaining agreement..

This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions.

This question tests your knowledge of Domain 7.

In the context of Individual Rights During Examinations, specifically relating to GDPR, the question asks about EU, GDPR, NOT.

The correct answer is B: An organization must have a documented lawful basis for collecting or processing personal data..

This question relates to individual rights during examinations. The correct answer accurately describes the legal protections, obligations, or privacy considerations that apply in workplace investigations. Fraud examiners must balance investigative needs with legal protections for individuals.

This question tests your knowledge of Domain 1.

In the context of Overview of the Legal System, specifically relating to civil, the question asks about civil actions in most jurisdictions is CORRECT, CORRECT.

The correct answer is B: Civil actions begin with the filing of a pleading, usually in the jurisdiction where the defendant resides or where the claim originated..

This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions.

This question tests your knowledge of Domain 11.

In the context of Testifying, specifically relating to expert witness, testimony, the question asks about examinations of expert witnesses in most inquisitorial jurisdictions is accurate.

The correct answer is D: The parties are often allowed to question the expert's methods and analysis.

This question relates to expert witness testimony. The correct answer accurately describes the role, qualifications, or techniques for effective expert testimony. Fraud examiners often serve as expert witnesses and must understand these principles. In adversarial systems, opposing parties present their cases before a neutral judge or jury, while in inquisitorial systems, judges take a more active role in investigating cases. Expert witnesses provide specialized knowledge to help the fact finder understand complex issues. Their testimony must be relevant, reliable, and based on sufficient facts or data.

This question tests your knowledge of Domain 1.

In the context of Overview of the Legal System, specifically relating to common law, the question asks about the core concepts in this area.

The correct answer is B: False.

This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions.

This question tests your knowledge of Domain 1.

In the context of Overview of the Legal System, specifically relating to inquisitorial, the question asks about the qualifications of expert witnesses in most inquisitorial jurisdictions is CORRECT, CORRECT.

The correct answer is D: The qualification of an expert is generally based on standardized requirements.

This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions. In adversarial systems, opposing parties present their cases before a neutral judge or jury, while in inquisitorial systems, judges take a more active role in investigating cases. Expert witnesses provide specialized knowledge to help the fact finder understand complex issues. Their testimony must be relevant, reliable, and based on sufficient facts or data.

This question tests your knowledge of Domain 1.

In the context of Overview of the Legal System, specifically relating to criminal, the question asks about the core concepts in this area.

The correct answer is A: True.

This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions.

This question tests your knowledge of Domain 1.

In the context of Overview of the Legal System, specifically relating to civil, the question asks about BEST.

The correct answer is B: Carnages.

This question relates to the legal system framework. Understanding the distinction between different legal systems and processes is crucial for fraud examiners. The correct answer accurately describes the relationship between different legal entities and their jurisdictions.

This question tests your knowledge of Domain 9.

In the context of Civil Actions, specifically relating to alternative dispute, the question asks about MOST ACCURATE, the different types of alternative dispute resolution'.

The correct answer is C: The decisions reached in all arbitrations are always binding.

This question focuses on civil action processes. The correct answer accurately describes civil litigation procedures, evidence preservation, or remedies available to fraud victims. Civil recovery is often an important component of fraud resolution.